Industrial Development Board changes language in TIF, OKs Mall plan

The Oak Ridge Industrial Development Board approved an amendment to its tax increment financing policy during a meeting Thursday that lasted only minutes at the Oak Ridge Municipal Building.

Beverly Majors/The Oak Ridger

The Oak Ridge Industrial Development Board approved an amendment to its tax increment financing policy during a meeting Thursday that lasted only minutes at the Oak Ridge Municipal Building.

The IDB met in a special-called meeting to address one issue — an amendment to its TIF policy that the City Council requested during its City Council meeting in October.

The amendment had to do with the policy concerning a review committee's input before considering a proposed economic impact plan. The change came after Council members said they had problems with the language of the policy.

The amendment was shortened to state, "Notwithstanding anything to the contrary herein, the Board may elect to consider a proposed economic impact plan without appointing an Application Review Committee."

Language left out stated the above, but included "... And without the Application Review Committee or the Board having fist reviewed and approved the application for the economic impact plan and without the Application Review Committee having first reviewed and approved the proposed economic impact plan."

The nine-member IDB voted 8-0 to approve the amendment. Member Harold Osucha was absent.

In the second meeting of the IDB, after a public hearing about the Oak Ridge Mall Economic Impact Plan, the IDB approved a resolution to recommend for approval the the Economic Impact Plan for the redevelopment of the Oak Ridge Mall property to the City Council and to the Anderson County Commission.

The Economic Impact Plan is the first step in identifying the area from which the incremental tax revenues will be derived and to identify the qualifying project.

Crosland Southeast made the application for the plan and is also asking the IDB to waive the application process and fees. The IDB will take up that issue at its next regular meeting in November.

Crosland is the retail and mixed-use development firm based in Charlotte, N.C., that is under contract to purchase the Oak Ridge Mall property.

In discussing the TIF and its relationship to the redevelopment of the property, IDB legal consultant Mark Mamantov said the TIF for the mall property differs from the TIF program used in the development of the Woodland Town Center.

"This is the first developer-driven plan," Mamantov said. The risk, he said with Woodland TIF would be with the bank. In this case, the risk is on Crosland. He said about 90 percent of TIF plans in the state are "done this way."

"We're seeing it more frequently for major developments," he said.

Mamantov said the realistic amount for the TIF is set at $13 million, but added the amount is also conservative.

"What drives the final amount is what the bank will look at," he said.

Crosland representative Tim Sittema told the IDB he couldn't give them an exact timeline for construction, but said by the middle of next year, demolition would begin at the mall if all the targets are in line.

"The IDB is the first step," he said. "The next biggest step is the marketing effort. We can't develop without demand."

Once the retail side is on board, Sittema said the company would then pursue the financing. The retail, he said, "is what will underwrite the loan."

Sittema said company representatives are still meeting with retailers, stating many "'want' to be in Oak Ridge, but don't 'need' to be in Oak Ridge."

City Manager Mark Watson said "selling ourselves" is key.

Watson said the "plan is solid," but "right now we have to build that market."

Beverly Majors can be contacted at (865) 220-5514.

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